Monday, August 18, 2014

A new
scam is on the rise which targets restaurant owners and their customers,
according to the latest data from Financial Fraud Action UK, a payments
industry body.

But this
scam is just one of many reported each year. We asked the fraud body about
other scams on the rise.

Some
have been around for a few years with criminals finding these are the most
effective - and are therefore increasingly using them. These are the top five
with advice on how to protect yourself against being duped on each.

1. "Vishing"

Vishing
is a type of fraud which takes place over the phone. Fraudsters call up
consumers, and attempt to lure them into giving their bank security details
over the phone, including their PIN. The scam typically involves a fraudster suggesting they are from your bank, and
that there is a problem on your account. They may also ask you to call your
bank to confirm, where in fact they stay on the line and continue their
deception. There are variations on this scam where fraudsters deceive the
victim into transferring money from their account to one which is accessible to
the fraudster.

Prevention advice:

• Be wary of unsolicited approaches by phone and
cold callers who suggest you hang up the phone and call them back. Fraudsters
can keep your phone line open by not putting down the receiver at their end.

• Never disclose your four digit card PIN to
anyone, including the bank or police, any full password or online banking
codes, or personal details unless you are sure who you are talking to.

2. Deception thefts

Losses
due to fraud on lost or stolen cards increased by 7pc to £58.9m from £55.2m in
2012, with distraction thefts in shops and bars and shoulder surfing at ATMs
highlighted. Shoulder surfing involves a fraudster looking over someone’s
shoulder as they enter their PIN at an ATM, and then distract them when the
card is ejected, stealing the card in the process. Once they have your card and
PIN the fraudster uses them to spend your money.

Prevention advice:

• Always shield the keypad with
your free hand and your body to avoid anyone seeing you enter your PIN. This
will protect your PIN from anyone who might be looking over your shoulder, and
also help to keep your PIN safe if a fraudster has set up a hidden camera
filming the keypad.

• Be alert and put your personal
safety first. If someone is crowding or watching you, cancel the transaction
and go to another machine. Do not accept help from seemingly well-meaning
strangers and never allow yourself to be distracted.

• If you spot anything unusual
about the cash machine, or there are signs of tampering, do not use it. Report
it to the bank concerned immediately.

• Once you have completed a
transaction put your money and card away before leaving the cash machine.
Destroy or preferably shred your cash machine receipts, mini-statements or
balance enquiries when you dispose of them.

3. Malware

Malware
is malicious software which is unknowingly downloaded on to a computer and
which then enables fraudsters to steal personal or financial information or
perform unauthorised actions on the device. It is believed criminals are using
these stolen details to commit fraud by targeting those online retailers which
have not yet adopted security measures put in place by more established firms.

• Only shop on secure websites.
Before entering card details ensure that the locked padlock or unbroken key
symbol is showing in your browser.

• Always be suspicious of
unsolicited emails that are supposedly from a reputable organisation, such as
your bank or the tax office and do not click on any links in the email.

4. Courier fraud

A
fraudster rings you, claiming to be from your bank, saying their systems have
spotted a fraudulent payment on your card or that your card is due to expire
and needs replacing. You may be asked to ring back using the phone number on
the back of your card which further convinces you the call is genuine. However,
the criminal keeps the line open at their end so, when you make the call, you
are unknowingly connected straight back to the fraudster.

Then, by
seeming to offer assistance, the fraudster tries to gain your trust. In most
cases you are asked to "cancel" your existing card or
"activate" or "authorise" a replacement card by keying your
PIN into your phone’s handset. The fraudster then poses as a bank
representative to pick up your card from your home, sometimes giving you a
replacement card, which is a fake. In some cases a genuine courier company is
hired to pick up the card, which the victim has been asked to place into an
envelope.

Once
they have your card and PIN the fraudster uses them to spend your money.

Prevention advice:

• Never hand over your card: Your
bank or the police will never ring you to tell you they are coming to your home
to pick up your card. Never hand it over to anyone who comes to collect it.

• Never share your PIN: Your bank
will never ask you to authorise anything by entering your PIN into the
telephone. Never share your PIN with anyone.

• Always speak to the bank
securely: Before calling your bank, make sure you can hear the dial tone. Only
ever call your bank on an advertised number.

5. Money mules

Criminals
dupe ordinary people into thinking they are an employer. They may offer jobs,
involving receiving money into your bank account and transferring it to another
account, and keeping some for yourself. This is money laundering, a criminal
activity which can lead to a prison sentence of up to ten years. The jobs may
be called "money transfer agents".

Prevention advice:

• Be very cautious of unsolicited
emails promising opportunities to make easy money.

• Verify any company that makes
you a job offer and check their contact details (address, landline phone
number, email address and website) are correct and whether they are registered
in the UK.

• Be especially wary of job
offers from people or companies overseas as it will be harder for you to find
out if they really are legitimate.

Skimming is taking route
in Kenya.It involves the copyin of ones Credit Card or ATM card when they swipe
them during shopping. What the swiper does is to swipe it and then place it
somewhere else – where the skimmer is(a device the size of a mobile phone)
these device copies all your details and once you are gone the crooks make a
duplicate of your card.

Prevention advice

Once your card is
swiped let be returned to you immediately

Do not entertain
cashiers talking to you maybe about your country as they keep your card –
chances are they are copying.

Never allow your
card to leave your line of sight when a transaction is being done.

Make a mental
note of transactions and keep all receipts for future reference